Investing.com — U.S. stock markets opened higher after Federal Reserve Chairman Jerome Powell laid out a change in the central bank’s approach to policy-making that is likely to rule out any hike in interest rates for some years.
By 9:35 AM ET (1335 GMT), the Dow Jones Industrial Average was up 116 points, or 0.4%, at 28,448 points. The S&P 500 was up 0.2% and the Nasdaq Composite, after a series of record highs, was lagging slightly, falling less than 0.1%.
““The Committee seeks to achieve inflation that averages 2% over time, and therefore judges that, following periods when inflation has been running persistently below 2%, appropriate monetary policy will likely aim to achieve inflation immediately above 2% for some time,” The Fed said in an accompanying statement.
Analysts welcomed the move, which acknowledges the trouble the Fed has had in getting inflation up to the level that aligns best with its other goal, full employment. However, it now puts an extra onus on the central bank to achieve its goals.